KARACHI- The business community has suggested a cut down in sales tax from 17 percent to 5 percent, which according to them would increase the tax revenue.

Federation of Pakistan Chamber of Commerce and Industry (FPCCI) President Zakaria Usman said that the government got only 3.5 percent on account of 17 percent sales tax, as the remaining amount went into refund, adjustment and corruption.

In this backdrop, FPCCI has advised the government to slash the sales tax from 17 percent to 5 percent, which would not only enhance the purchasing power of the people by 10 percent, but would also increase the sales tax receipts to over Rs1300 billion from Rs1000 billion. Besides, it would help meet the IMF condition also.